Review on Impacts of Energy Factors on Real Estate Values

Abstract

Introduction: Real estate valuation is an issue of particular concern. It depends on many factors such as economic social and physical factors. The energy is one of the important factor, which affects the real estate value. In property appraisal, the energy can be considered as a price-setting factor in market price of real estate. Then, it is so difficult for real estate appraiser to determine why property price differ and how much this difference can be attributed to particular distinguishing features such as energy. Many studies have exanimated the effects of various factors on real estate value such as transportation, location, conditions, houses features, pollution. However, the energy is not much analyzed as factor of real estate value despite it great role in real estate value determination. This paper seeks to fill that void by examining the effects of energy on property values: power tower, power lines, energy transformation plants. Methods: The study is engaged in a legal doctrinal analysis of law and scientific research findings. It analyses decisions from courts and tribunals related to the impacts of energy on property prices in order to establish their views of energy factor in determining real estate values and who bears the responsibility of property appreciation or depreciation. Results: the paper highlights many aspects related to energy as value factor of real estate, it can be used to assess the market price and determine the influence of energy factor may have on the property final market value. Discussions: This research informs property appraisers of the energy importance in real estate appreciation and increasing value. However, in few cases, the energy could decrease the property value specially properties near or below high voltage line power or transformations plants if the risk is shared and approved.